The price of Liquefied Petroleum Gas (LPG), commonly used for cooking, has surged from N700 per kilogram in June 2023, when President Bola Tinubu took office, to N1,500 per kilogram in October 2024—a staggering 114% increase over 16 months.
This price hike is largely attributed to the rising exchange rate, as LPG is priced in dollars. The naira’s devaluation and floating, introduced by the Tinubu administration, have caused the currency to depreciate significantly, now trading at about N1,700 to the dollar, compared to under N700 in May 2023.
Suresh Kumar, Managing Director and CEO of NIPCO Plc, highlighted that over 60% of Nigeria’s LPG is imported. Speaking at the 2024 National Conference of the Nigerian Association of Liquefied Petroleum Gas Marketers in Lagos, Kumar emphasized the need for the Federal Government to encourage Chevron to convert more of its propane into butane, which is more suitable for domestic use. Currently, less than 40% of the 1.5 million metric tonnes consumed in Nigeria is produced locally.
With the fluctuating exchange rate and Nigeria’s dependence on imports, concerns are growing that LPG prices may continue to rise. According to the National Bureau of Statistics (NBS), the average price to refill a 5kg LPG cylinder increased by 4.19% from N6,430.02 in August 2024 to N6,699.63 in September 2024, a 59.90% year-on-year increase from N4,189.96 in September 2023. Rivers State recorded the highest price at N7,285.71, followed by Gombe and Borno, while Kebbi had the lowest price at N5,950.
For a 12.5kg cylinder, the average retail price rose by 4.89% from N15,552 in August 2024 to N16,313 in September 2024. Year-on-year, this represents a 76.41% increase from N9,247.40 in September 2023. Rivers again recorded the highest price, while Adamawa had the lowest.
The steady rise in LPG prices, alongside the removal of fuel subsidies and the naira’s depreciation, has forced many Nigerians to return to traditional cooking methods like using firewood. This shift threatens the country’s progress toward achieving clean cooking and reducing deforestation.
Samuel Nwanze, Executive Director of Heirs Energies, noted that Nigeria requires $7.5 billion to meet its clean cooking goals by 2030. Ogun State’s Commissioner for Environment, Ola Oresanya, warned that rising LPG costs could push more people to use charcoal.
The International Energy Agency (IEA) has raised alarms about the health impacts of cooking with firewood and charcoal, estimating that 500,000 African women die prematurely each year from the effects of traditional cooking methods. The lack of access to clean cooking also disproportionately affects women and children, limiting their time for education and professional development.